47-2403. Power to transfer; good faith
purchase of goods; "entrusting"
A. A purchaser of goods acquires all title which his transferor had or had power to
transfer except that a purchaser of a limited interest acquires rights only to the extent
of the interest purchased. A person with voidable title has power to transfer a good
title to a good faith purchaser for value. When goods have been delivered under a
transaction of purchase the purchaser has such power even though:
1. The transferor was deceived as to the identity of the purchaser, or
2. The delivery was in exchange for a check which is later dishonored, or
3. It was agreed that the transaction was to be a "cash sale", or
4. The delivery was procured through fraud punishable as larcenous under the
criminal law.
B. Any entrusting of possession of goods to a merchant who deals in goods of that
kind gives him power to transfer all rights of the entruster to a buyer in ordinary
course of business.
C. "Entrusting" includes any delivery and any acquiescence in retention of
possession regardless of any condition expressed between the parties to the delivery or
acquiescence and regardless of whether the procurement of the entrusting or the
possessor's disposition of the goods have been such as to be larcenous under the criminal
law.
D. The rights of other purchasers of goods and of lien creditors are governed by
the chapters on secured transactions (chapter 9 of this title) and documents of title
(chapter 7 of this title).
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